Discounted Cash Flow (DCF) Analysis Levered

Pioneer Power Solutions, Inc. (PPSI)

$4.15

+0.25 (+6.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.70 | 4.15 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 101.39106.3920.5819.493.502.071.230.730.430.25
Revenue (%)
Operating Cash Flow 1.402.15-5.57-3.61-2.34-0.45-0.27-0.16-0.09-0.06
Operating Cash Flow (%)
Capital Expenditure -1.45-0.59-0.15-0.18-0.03-0.02-0.01-0.01-0-0
Capital Expenditure (%)
Free Cash Flow -0.051.56-5.73-3.79-2.37-0.47-0.28-0.17-0.10-0.06

Weighted Average Cost Of Capital

Share price $ 4.15
Beta 0.012
Diluted Shares Outstanding 8.73
Cost of Debt
Tax Rate -0.22
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.760
Total Debt -
Total Equity 36.21
Total Capital 36.21
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 101.39106.3920.5819.493.502.071.230.730.430.25
Operating Cash Flow 1.402.15-5.57-3.61-2.34-0.45-0.27-0.16-0.09-0.06
Capital Expenditure -1.45-0.59-0.15-0.18-0.03-0.02-0.01-0.01-0-0
Free Cash Flow -0.051.56-5.73-3.79-2.37-0.47-0.28-0.17-0.10-0.06
WACC
PV LFCF -0.45-0.26-0.15-0.08-0.05
SUM PV LFCF -0.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.76
Free cash flow (t + 1) -0.06
Terminal Value -3.36
Present Value of Terminal Value -2.79

Intrinsic Value

Enterprise Value -3.79
Net Debt -9.92
Equity Value 6.14
Shares Outstanding 8.73
Equity Value Per Share 0.70